NFU Cymru is using Monmouthshire Show to advise sheep farmers to check tax implications when selling wool to Irish merchants.

It has emerged that livestock keepers may be liable to a VAT charge on a sale unless it can be proved that the wool has left the UK within three months of the sale. HM Revenue & Customs says farmers must ensure they have correct documentation and, more importantly, whether the wool is actually dispatched to Ireland rather than used in the UK.

When the wool is shipped to Ireland within three months the sale is zero rated for VAT but farmers should be aware of the rules.